Document Content

DECREE

ON PETROL AND OIL TRADING

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the June 14, 2005 Commercial Law;

At the proposal of the Minister of Industry and Trade,

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Decree prescribes petrol and oil trading and conditions for petrol and oil trading in the domestic market.

Article 2. Subjects of application

1. This Decree applies to Vietnamese traders under the Commercial Law.

2. This Decree does not apply to traders that import, produce and process petrol and oil for their own special use without selling them on the market under the Ministry of Industry and Trade's regulations.

Article 3. Interpretation of terms

In this Decree, the terms below are construed as follows:

1. Petrol and oil is a general term used to refer to products of the crude oil refining process which are used as fuel, including engine petrol, diesel oil, kerosene, fuel oil and jet fuel: and other products used as engine fuel excluding liquefied gases of all kinds.

2. Petrol and oil trading covers the export (of domestically produced petrol and oil and raw materials and petrol and oil and raw materials originated from imports), import, temporary import for re-export, border-gate transfer and export processing of petrol and oil and raw materials: production and processing of petrol and oil: distribution of petrol and oil on the domestic market: and provision of services such as warehouse and port leasing and forwarding, preservation and transportation of petrol and oil.

3. Petrol and oil production means the process to refine and transform crude oil, petrol and oil products, semi-finished petrol and oil products, additives and other preparations into petrol and oil products.

4. Petrol and oil processing means the process to mix petrol and oil products, semi-finished petrol and oil products, additives and other preparations to turn them into petrol and oil products.

5. Petrol and oil trading establishments include special-use ports and petrol and oil production and processing plants, depots, means of transport and petrol and oil retail shops.

6. Raw materials for petrol and oil production and processing include crude oil, petrol and oil products, semi-finished petrol and oil products, additives and other preparations.

7. World petrol and oil price means the trading price on the international market jointly determined and announced by the Ministry of Finance and the Ministry of Industry and Trade.

8. Petrol and oil retail price means the price posted up at petrol and oil retail shops.

9. Base price means the price used to set the petrol and oil retail price, which has the following constituents and is determined to equal (=) {OF price plus (+) import duty plus (+) excise tax} multiplied by (x) foreign exchange rate plus (+) business expense norm plus (+) price valorization fund plus (+) pre-tax profit norm plus (+) value-added tax plus (+) petrol and oil charges plus (+) other payable taxes, charges and payments under current law; and is calculated on the average number of days of reserve under Article 22 of this Decree; in which:

CIF price is the world petrol and oil cost price plus (+) insurance plus (+) freight for transportation to Vietnamese port;

Foreign exchange rate is the average selling rate of commercial banks with which key traders make transactions;

Import duty, excise tax, value-added tax, petrol and oil charges and other payable taxes, charges and payments (if any) comply with law;

Business expense norm, profit norm and price valorization fund comply with the Ministry of Finance's regulations.

10. Petrol and oil traders include petrol and oil exporters and importers; petrol and oil producers; petrol and oil general agents and retail agents; and petrol and oil service providers.

11. Key traders include petrol and oil exporters, importers and producers.

Article 4. Application of treaties and relevant laws

1. Foreigners trading in petrol and oil in Vietnam under treaties to which the Socialist Republic of Vietnam is a contracting party shall comply with this Decree. When those treaties provide otherwise, they prevail.

2. Apart from complying with this Decree, petrol and oil traders shall comply with other relevant laws.

Article 5. Planning on petrol and oil trading system development

1. The Ministry of Industry and Trade shall assume the prime responsibility for. and coordinate with concerned ministries and branches in. elaborating and publicizing a master plan on petrol and oil trading system development in line with development orientations for Vietnam's oil and gas industry and socio-economic development up to 2020; and planning the development of systems of key petrol and oil depot and ports and depots for strategic reserve and circulation reserve; and petrol and oil pipelines nationwide.

2. When elaborating a project to build or upgrade transport systems, the Ministry of Transport shall assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade, concerned ministries and branches and provincial-level People's Committees in, determining connection points suitable to the planned petrol and oil trading establishment system.

3. Provincial-level People's Committees shall elaborate and publicize master plans on networks of petrol and oil retail shops and depots to meet local petrol and oil demands. Petrol and oil retail shops must comply with national standards announced by the Ministry of Science and Technology. Petrol and oil retail shops in border areas must comply with regulations on safety assurance for management and protection of border lines and boundary markers and regulations against cross-border petrol and oil smuggling.

4. Traders of all economic sectors are encouraged to invest in developing petrol and oil trading establishments in conformity with the approved planning.

Article 6. Fire prevention and fighting and environmental protection

1. In their trading activities, petrol and oil trading establishments shall constantly meet requirements under the laws on fire prevention and fighting and environmental protection.

2. Petrol and oil traders shall regularly examine petrol and oil trading establishments in strictly complying with the laws on fire prevention and fighting and environmental protection.

Chapter II

PETROL AND OIL TRADING

Section I

PETROL AND OIL EXPORT AND IMPORT

Article 7. Conditions for obtaining petrol and oil export-import licenses

A trader which fully meets the conditions below may obtain a petrol and oil export-import license:

1. Being established lawfully, having registered for petrol and oil trading as specified in its business registration certificate;

2. Having special-use wharves within Vietnam's international port system, which are capable of receiving import oil tankers or other means of transport with a tonnage of at least seven thousand (7,000) tons under its ownership or co-ownership or on a lease for at least five (5) years;

3. Having depots with a minimum capacity of fifteen thousand (15.000) cubic meters to receive imported petrol and oil from oil tankers and other means of transport, which are under its ownership or co-ownership or on a lease for at least five (5) years;

4. Having special-use means to transport petrol and oil under its ownership or co-ownership or on a lease for at least five (5) years to ensure petrol and oil supply for its distribution network;

5. Having its own petrol and oil distribution network with at least ten (10) petrol and oil retail shops under its ownership or co-ownership and a network of at least forty (40) petrol and oil retail agents;

6. Exporters and importers of jet fuel are not required to have distribution networks under Clause 5 of this Article, but must have jet fuel filling equipment under their ownership or co-ownership.

Article 8. Competence, dossiers and order of granting petrol and oil export-import licenses

1. The Ministry of Industry and Trade shall grant petrol and oil export-import licenses to traders that fully meet the conditions specified in Article 7 of this Decree.

2. Dossiers of application for petrol and oil export-import licenses

a) For a new license, a dossier comprises:

- An application for a petrol and oil export-import license made according to Form No. 1 attached to this Decree (not printed herein):

- A valid copy of the business registration certificate;

- A list of material and technical foundations in service of petrol and oil export and import specified in Clauses 2, 3 and 4, Article 7 of this Decree, enclosed with supporting documents;

- A list of petrol and oil retail shops under the trader's ownership or co-ownership and a list of general agents and agents within the trader's petrol and oil distribution network under Clause 5. Article 7 of this Decree, enclosed with supporting documents.

b) For a supplemented or modified license

When there are changes in the contents of a petrol and oil export-import license, the trader shall compile and submit a dossier of request for supplementation and modification of the license to the Ministry of Industry and Trade. Such a dossier comprises:

- A written request for license supplemen­tation and modification;

- The original petrol and oil export-import license;

- Documents proving contents to be supplemented or modified.

c) For a re-granted license

When a petrol and oil export-import license is lost, burnt or otherwise destroyed, the trader shall compile and submit a dossier of request for license re-grant to the Ministry of Industry and Trade. Such a dossier comprises:

- A written request for license re-grant;

- The original or valid copy of the petrol and oil export-import license (if any).

When a petrol and oil export-import license expires, the trader shall compile a dossier of application for a new license under Point a of this Clause and submit it to the Ministry of Industry and Trade thirty (30) days before the license expires.

3. Order of granting petrol and oil export-import licenses

a) Traders submit dossiers to the Ministry of Industry and Trade;

b) Within thirty (30) working days after receiving valid dossiers, the Ministry of Industry and Trade shall consider, evaluate and grant petrol and oil export-import licenses according to Form No. 2 attached to this Decree (not printed herein) to traders. In case of refusal, it shall issue a written reply clearly stating the reason:

c) When a dossier is incomplete, within seven (7) days after receiving such dossier, the Ministry of Industry and Trade shall make a written request for the trader to supplement the dossier.

4. A petrol and oil export-import license is valid for live (5) years from the date of issuance.

5. Traders obtaining petrol and oil export-import licenses shall pay charges and fees under the Ministry of Finance's regulations.

6. A petrol and oil export-import license is revoked when it expires; or the trader no longer operates in petrol and oil export and import; or the trader goes bankrupt under law; or in other cases under law.

Article 9. Rights and obligations of petrol and oil exporters and importers

1. Based on the minimum import quota annually assigned by the Ministry of Industry and Trade, petrol and oil exporters and importers shall import petrol and oil. ensuring the quality, volume and categories of petrol and oil for their distribution networks and the minimum petrol and oil reserve level under Article 22 of this Decree.

2. Export (of domestic petrol, oil and raw materials, and petrol and oil and raw materials originated from imports) and temporary import for re-export and export processing of petrol and oil and raw materials comply with Article 24 of this Decree.

3. To trade in petrol, oil and raw materials with other key traders.

4. To observe regulations on, and be held responsible for, prices, volume and quality of petrol and oil sold on the market.

5. Apart from selling petrol and oil directly to industrial households, to sign contracts only with traders that fully meet the conditions on general agents and agents under Articles 13 and 14, and do not violate Clause 1 or 2, Article 17, of this Decree. To register their distribution networks under the Ministry of Industry and Trade's regulations.

6. To adopt rules on the uniform display of names of petrol and oil exporters and importers at petrol and oil retail shops within their distribution networks and to examine and supervise enterprises within their distribution networks. The use of logos, trademarks and trade indications of petrol and oil exporters and importers must comply with the Intellectual Property Law and other laws.

7. To transship and transfer alongside ships petrol and oil only at locations prescribed by the Ministry of Transport or provincial-level People's Committees; to transship and transfer alongside ships petrol and oil from large ships or other means of transport which cannot be received directly at Vietnamese ports as prescribed by port authorities.

8. To observe the laws on fire prevention and fighting and environmental protection in business activities.

9. To import or procure domestic raw materials to process petrol and oil. Raw materials shall be imported according to registered schedules after these schedules are certified and notified by the Ministry of Industry and Trade to customs offices for customs clearance and control of traders' raw material import.

10. To supply jet fuel when fully meeting conditions under relevant laws.

11. To apply derivative instruments and operations to petrol and oil transactions and trading in conformity with international practice.

Section 2

PETROL AND OIL PRODUCTION

Article 10. Conditions on petrol and oil production

A trader that fully meets the conditions below may produce petrol and oil:

1. Being lawfully established, having registered for petrol and oil trading as specified in its business registration certificate:

2. Having petrol and oil production establishments under approved planning and being permitted for investment by competent authorities:

3. Having laboratories and gauging facilities capable of testing the quality of produced petrol and oil under current regulations.

Article 11. Rights and obligations of petrol and oil producers

1. To produce petrol and oil according to registered plans annually certified by the Ministry of Industry and Trade; to maintain the minimum reserve of petrol and oil and raw materials for production in conformity with approved investment projects and production plans registered with the Ministry of Industry and Trade.

2. To procure domestic raw materials, to directly import or entrust licensed petrol and oil exporters and importers to import raw materials. To import raw materials according to registered schedules after these schedules are certified and notified by the Ministry of Industry and Trade to customs offices for customs clearance and control of traders' raw material import.

3. To process petrol and oil for domestic sale or export.

4. To circulate only petrol and oil which comply with national technical regulations and announced applicable standards.

5. To sell their petrol and oil products on the domestic market through their distribution networks under this Decree or to sell them only to other key traders.

To export their petrol and oil products according to their schedules registered with the Ministry of Industry and Trade and approved investment projects.

6. To organize domestic petrol and oil distribution networks according to regulations applicable to petrol and oil exporters and importers under Clauses 4 and 5, Article 7; and Clauses 3,4,5,6,7 and 8, Article 9 of this Decree.

Section 3

PETROL AND OIL DISTRIBUTION

Article 12. Rights to petrol and oil distribution

Key traders may distribute petrol and oil through their attached units, including member enterprises, branches, depots and petrol and oil retail shops, or through a network of general agents and retail agents under this Section.

Article 13. Conditions on petrol and oil general agents

A trader which fully meets the conditions below may act as a general agent for petrol and oil trading (below referred to as general agent):

1. Being lawfully established; having registered for petrol and oil trading as specified in its business registration certificate:

2. Having depots or tanks with a capacity of at least five thousand (5.000) cubic meters under its ownership or co-ownership or on a lease for at least five (5) years to ensure stable supply for its petrol and oil distribution network:

3. Having its own petrol and oil distribution network with at least five (5) petrol and oil retail shops under its ownership or co-ownership and at least twenty (20) petrol and oil retail agents. This distribution network must belong to the key trader's distribution network and is subject to that trader's control;

4. Having special-use means to transport petrol and oil under its ownership or co-ownership or on a lease for at least five (5) years;

5. Having its managers and sale staff technically trained in fire prevention and fighting safety and environmental protection under current regulations.

Article 14. Conditions on petrol and oil retail agents

A trader which fully meets the conditions below may act as a petrol and oil retail agent (below referred to as agent):

1. Being lawfully established: having registered for petrol and oil trading as specified in its business registration certificate;

2. Having petrol and oil retail shops under its ownership or co-ownership;

3. Having its managers and sale staff technically trained in fire prevention and control safety and environmental protection under current regulations.

Article 15. Conditions for petrol and oil retail shops to obtain certificates of eligibility for petrol and oil trading

A petrol and oil retail shop which fully meets the conditions below may obtain a certificate of eligibility for petrol and oil trading:

1. Having sale places which conform with the approved planning;

2. Being built and equipped in accordance with current criteria on petrol and oil retail shops promulgated by the Ministry of Science and Technology;

3. Having its managers and sale staff technically trained in fire prevention and fighting safety and environmental protection under current regulations.

Article 16. Competence, dossiers and order of granting certificates of eligibility for petrol and oil trading to petrol and oil retail shops

1. Provincial-level Industry and Trade Departments shall grant certificates of eligibility for petrol and oil trading to petrol and oil retail shops that fully meet the conditions specified in Article 15 of this Decree.

2. Dossiers of application for certificates of eligibility for petrol and oil trading

a) For a new certificate, a dossier comprises:

- An application for a certificate of eligibility for petrol and oil trading made according to Form No. 3 attached to this Decree (not printed herein):

- A valid copy of the business registration certificate of the owner of petrol and oil retail shop;

- A list of equipment of the petrol and oil retail shop under Clause 2. Article 15 of this Decree and documents proving the lawful construction of the shop;

- Valid copies of professional training certificates of the petrol and oil retail shop's managers and staff under Clause 3, Article 15 of this Decree.

b) For a supplemented or modified certificate

When there are changes in the contents of a certificate of eligibility for petrol and oil trading, the trader shall compile and submit a dossier of request for supplementation and modification of the certificate to a provincial-level Industry and Trade Department. Such a dossier comprises:

- A written request for certificate supplementation and modification;

- The original certificate of eligibility for petrol and oil trading;

- Documents proving contents to be supplemented or modified.

c) For a re-granted certificate

When a certificate of eligibility for petrol and oil trading is lost, burnt or otherwise destroyed, the trader shall compile and submit a dossier of request for certificate re-grant to a provincial-level Industry and Trade Department. Such a dossier comprises:

- A written request for certificate re-grant:

- The original or valid copy of the certificate of eligibility for petrol and oil trading (if any).

When a certificate of eligibility for petrol and oil trading expires, the trader shall compile a dossier of application for a new certificate under Point a of this Clause and submit it to a provincial-level Industry and Trade Department thirty (30) days before the certificate expires.

3. Order of granting certificates of eligibility for petrol and oil trading

a) Traders submit dossiers to provincial-level Industry and Trade Departments;

b) Within thirty (30) working days after receiving valid dossiers, provincial-level Industry and Trade Departments shall consider, evaluate and grant certificates of eligibility for petrol and oil trading according to Form No. 4 attached to this Decree (not printed herein) to traders. In case of refusal, they shall issue a written reply clearly stating the reason;

c) When a dossier is incomplete, within seven (7) days after receiving such dossier, a provincial-level Industry and Trade Department shall make a written request for the trader to supplement the dossier.

4. A certificate of eligibility for petrol and oil trading is valid for five (5) years from the date of issuance.

5. Traders obtaining certificates of eligibility for petrol and oil trading shall pay charges and fees under the Ministry of Finance's regulations.

6. A certificate of eligibility for petrol and oil trading is revoked when it expires; or the trader no longer operates in petrol and oil trading; or the trader goes bankrupt under law; or in other cases under law.

Article 17. Rights and obligations of general agents, agents and petrol and oil retail shops

1. For a general agent, to sign a contract to act as general agent for only one (I) key trader.

2. For an agent, to sign a contract to act as agent for only one (1) general agent or one (1) key trader.

3. For a petrol and oil retail shop within a key trader's distribution network, to be subject to the control of that trader; to post up sale prices of petrol and oil of all categories under the agency contract and sell petrol and oil at these prices: to have signboards fully indicating contents required by law.

4. To trade in petrol and oil only with traders within their distribution networks under Clauses 1 and 2 of this Article for sale to consumers and be held responsible for the quality, volume and prices of petrol and oil on sale under regulations.

5. To strictly prohibit acts of speculating or hoarding goods, unreasonably hiking prices, spreading false information, smuggling and committing trade frauds and other deceitful acts.

6. To comply with the Ministry of Finance's regulations on voucher recording in petrol and oil trading activities.

7. To observe the laws on fire prevention and fighting and environmental protection in business activities.

8. To comply with Articles 15 and 16 and this Article, for member enterprises, branches, depots and petrol and oil retail shops of a key trader.

9. Apart from putting up traders' signboards under current regulations, to use commercial names, logos, trademarks and trade indications of key traders only under contracts in compliance with the Intellectual Property Law.

10. For a general agent, to examine and supervise activities of agents within its distribution network; to take joint responsibility for its agents' violations of regulations on petrol and oil trading under law.

Section 4

PROVISION OF PETROL AND OIL SERVICES

Article 18. Conditions on provision of services to lease ports and depots for receiving petrol and oil

1. Being lawfully established, having registered for petrol and oil trading as specified in business registration certificates.

2. Having special-use wharves within the system of seaports and inland waterway ports and depots under enterprises' own ownership or co-ownership, which are built up to prescribed standards and in conformity with approved planning.

3. Having managers and sale staff trained in fire prevention and fighting safety techniques and environmental protection under current regulations.

Article 19. Conditions on provision of petrol and oil transport services

1. Being lawfully established, having registered for petrol and oil trading as specified in business registration certificates.

2. Having special-use means to transport petrol and oil under enterprises' own ownership or co-ownership, which meet requirements and standards on petrol and oil transportation and are examined and permitted for circulation by competent authorities under law.

3. Having managers and direct operators of means of transport trained in fire prevention and fighting safety techniques and environmental protection under current regulations.

Article 20. Rights and obligations of petrol and oil service providers

1. To take responsibility for the quality and volume of petrol and oil in the process of receiving, preserving and transporting petrol and oil under contracts signed with traders hiring their services.

2. When engaged in other petrol and oil trading activities (general agent, agent), to comply this Decree's provisions on those activities.

3. To comply with the laws on fire prevention and control and environmental protection in business activities.

Section 5

PETROL AND OIL RESERVES FOR CIRCULATION

Article 21. Subjects of petrol and oil reserves for circulation

1. Subject to petrol and oil reserves for circulation are key traders.

2. National reserves of petrol and oil comply with the Government's separate regulations.

Article 22. Petrol and oil reserves for circulation

1. From the effective date of this Decree through 2025, petrol and oil exporters and importers shall ensure stable petrol and oil reserves for circulation equal to at least thirty (30) days of supply in terms of both quantity and category according to traders' annual sale plans.

2. From the effective date of this Decree through 2025, petrol and oil producers with domestic distribution networks shall ensure stable petrol and oil reserves for circulation equal to at least thirty (30) days of supply in terms of both quantity and category under their domestic sale plans annual My registered with the Ministry of Industry and Trade.

3. After 2025, traders specified in Clauses 1 and 2 of this Article shall ensure the minimum level of petrol and oil reserves for circulation under the Prime Minister's regulations.

Chapter II

PETROL AND OIL TRADING MANAGEMENT

Article 23. Petrol and oil import

1. Annually, based on the national economy's demand for petrol and oil and domestically produced petrol and oil, the Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade in. setting petrol and oil import orientations for the subsequent year. Demand for petrol and oil for defense shall be separately identified.

2. On the basis of petrol and oil import orientations, the Ministry of Industry and Trade shall allocate annual minimum import quotas in quantity and category to licensed petrol and oil exporters and importers to carry out import procedures with customs offices.

3. Based on market demands, petrol and oil exporters and importers shall decide on the volume of petrol and oil of all categories to be imported for domestic sale, which must not be lower than their assigned minimum quotas.

4. The Ministry of Industry and Trade shall assume the prime responsibility for. and coordinate with concerned ministries and branches in. examining and supervising traders in importing petrol and oil to meet economic and social demands. When necessary, the Ministry of Industry and Trade may adjust the minimum import quotas assigned to traders.

Article 24. Export, temporary import for re-­export, border-gate transfer, export processing of petrol and oil and raw materials

1. Only licensed petrol and oil exporters and importers may export (domestic petrol and oil and raw materials and petrol and oil and raw materials originated from imports) and temporarily import for re-export and transfer from or to border gates petrol and oil and raw materials. Only petrol and oil producers may export and process for export petrol and oil.

2. Temporary import for re-export, border-gate transfer and export processing of petrol and oil and raw materials comply with current laws.

3. The Ministry of Finance shall guide customs procedures for the export of petrol and oil and raw materials originated from imports.

Article 25. Petrol and oil import duty

Based on the tax rate bracket promulgated by the National Assembly Standing Committee, macro-balance norms and petrol and oil world price forecasts, the Ministry of Finance shall assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade in. setting stable import duly rates applicable to each category of petrol and oil and suitable to socio-economic conditions in each period and international commitments.

Article 26. Price valorization funds

1. Key traders shall set aside funds for price valorization under Article 27 of this Decree.

2. Price valorization funds shall be left at enterprises and separately accounted and may be used only for price valorization purpose.

3. The Ministry of Finance shall guide mechanisms to set up, manage and use price valorization funds.

Article 27. Petrol and oil sale prices

1. Principles for control of petrol and oil sale prices

a) Petrol and oil sale prices are subject to the state-controlled market mechanism;

b) Key traders may decide on wholesale prices. Petrol and oil retail prices shall be adjusted according to the principles and order specified in this Article. Key traders shall participate in valorizing prices under current law and may have reasonable expenses offset when participating in price valorization:

c) The interval between two (2) consecutive price adjustments is at least ten (10) days, for a price increase, and maximum ten (10) days, for a price decrease. When adjusting petrol and oil retail prices, key traders shall concurrently submit their pricing decisions and schemes to competent state agencies:

d) When receiving traders' pricing decisions and schemes, competent state agencies shall supervise traders in adjusting prices under law;

e) Based on socio-economic conditions and petrol and oil world prices in each period, the Prime Minister may decide to amend Clauses 2 and 3 of this Article.

2. Reduction of petrol and oil retail prices

a) When changes in price constituents cause the base price to decrease within twelve percent ( 12%) from current retail prices, key traders shall reduce retail prices accordingly;

b) When changes in price constituents cause the base price to decrease over twelve percent (> 12%) from current retail prices, key traders shall continue reducing retail prices after competent authorities have adopted financial solutions under law (import duty, price valorization fund). The interval between and time of price reductions are not limited.

3. Increase of petrol and oil retail prices

a) When changes in price constituents cause the base price to increase within seven percent ( 7%) from current retail prices, key traders may increase retail prices accordingly:

b) When changes in price constituents cause the base price to increase over seven percent (> 7%) to twelve percent ( 12%) from current retail prices, key traders may increase retail prices under Point a of this Clause plus (+) sixty per cent (60%) of the base price's increase of over seven per cent (> 7%) to twelve per cent ( 12%). The remaining forty percent (40%) will be offset by price valorization funds under the Ministry of Finance's guidance:

c) When changes in price constituents cause the base price to increase over twelve per cent (> 12%) from current retail prices or when price hiking affects socio-economic development and people's living conditions, the State shall announce the application of price valorization measures through tax administration and price valorization funds and according to current law.

Article 28. Management of petrol and oil quality and volume

1. Only petrol and oil compliant with national technical regulations and conformable with announced applicable standards may be circulated on the domestic market.

2. Petrol and oil traders shall comply with current regulations on petrol and oil quality management in the process of import, production, processing, preservation, transportation and sale of petrol and oil; be held responsible for the quality of petrol and oil within their managed distribution networks: ensure the precision of gauging devices for petrol and oil sale to users; and sell petrol and oil in sufficient volume with proper quality.

3. The Ministry of Science and Technology shall direct the inspection of gauging devices under current law on measurement and quality assurance according to national technical regulations and announced applicable standards; coordinate with concerned ministries and branches in reviewing national standards and technical regulations on petrol and oil to adjust and supplement quality norms and test methods in conformity with regional and international standards; designate domestic standard conformity evaluation organizations; and recognize evaluation results of foreign standard conformity evaluation organizations to ensure prompt, quick, accurate and convenient inspection.

Article 29. Responsibilities of ministries

Apart from responsibilities specified in this Decree, ministries shall, within their functions, tasks and powers, have responsibilities as follows:

1. The Ministry of Industry and Trade:

a) To examine and inspect key traders in complying with Articles 7. 9. 10. II and 22 of this Decree;

b)To promulgate the Regulation on petrol and oil agents; to examine and inspect traders in complying with Articles 13, 14. 15, 1ft and 17 of this Decree;

c) To examine and inspect traders in complying with Articles 18, 19 and 20 of this Decree.

2. The Ministry of Finance

To examine and inspect key traders in complying with Articles 26 and 27 of this Decree.

3. The Ministry of Science and Technology

a) To examine and inspect petrol and oil traders in complying with relevant provisions of Articles 9, 10, 11, 15, 17 and 28 of this Decree:

b) To modify, supplement and complete criteria on petrol and oil retail shops and prescribe their uniform implementation nationwide.

4. The Ministry of Transport shall assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade, the Ministry of Science and Technology and concerned agencies in. prescribing standards and conditions on points connecting transport networks with petrol and oil trading establishment systems.

5. Ministries, branches and provincial-level People's Committees shall perform their state management of relevant provisions under this Decree according to their competence.

Chapter IV

INSPECTION, EXAMINATION, AND HANDLING OF VIOLATIONS

Article 30. Inspection and examination of petrol and oil trading activities

1. Petrol and oil traders are subject to competent authorities' lawful inspection and examination of petrol and oil trading activities.

2. Inspection and examination of petrol and oil trading activities shall be conducted according to proper functions and competence and the law on inspection and examination.

3. Ministries, ministerial-level agencies and provincial-level People's Committees shall, within the ambit of their functions and tasks, direct and organize the inspection and examination of the observance of this Decree and other relevant documents; and stop and promptly handle violations to ensure a stable petrol and oil market and meet socio-economic development requirements.

Article 31. Violations committed by petrol and oil traders

1. Violations committed by petrol and oil exporters and importers

a) Exporting or importing petrol and oil without petrol and oil export-import licenses;

b) Failing to meet the conditions specified in Article 7 of this Decree in business activities;

c) Failing to assure the quality of petrol and oil sold on the market under law;

d) Importing petrol and oil with a volume smaller than the Ministry of Industry and Trade's annually assigned quotas under Article 23 of this Decree or reserving petrol and oil for circulation with a volume lower than the minimum level under Article 22 of this Decree;

e) Transshipping or transferring alongside ships petrol and oil outside areas prescribed by the Ministry of Transport or provincial-level People's Committees;

f) Signing agency contracts with traders that fail to meet the conditions on general agents under Article 13 of this Decree or the conditions on agents under Article 14 of this Decree;

g) Signing contracts with general agents or agents that violate Clause 1 or 2, Article 17 of this Decree;

h) Trading in petrol and oil with entities other than those specified in Clause 3, Article 9 or sell petrol and oil to outsiders of their distribution networks under this Decree;

i) Failing to adopt rules on the uniform display of names of petrol and oil exporters and importers at petrol and oil retail shops within their distribution networks under Clause 6. Article 9 of this Decree;

j) Increasing or reducing sale prices in contravention of Article 27 of this Decree or joining cartels with others for price monopoly;

k) Being engaged in petrol and oil export and import after their petrol and oil export-import licenses are revoked:

l) Committing other violations of this Decree and other relevant laws.

2. Violations committed by petrol and oil producers

a) Producing petrol and oil while failing to fully meet the conditions specified in Article 10. or producing petrol and oil with an output lower than the annually registered production plan or not according to registered schedules under Article 11, or reserving petrol and oil at a level lower than the minimum level set in Article 22 of this Decree;

b) Importing raw materials in contravention of Clauses 1 and 2, Article 11 of this Decree;

c) Circulating petrol and oil when failing to obtain certificates of national technical regulation conformity or ensure petrol and oil quality according to announced applicable standards under Clause 3. Article 11 of this Decree:

d) Exporting or selling their unlawfully produced petrol and oil or selling petrol and oil to improper buyers under Clauses 4 and 5, Article 11 of this Decree;

e) Transshipping or transferring alongside ships petrol and oil outside areas prescribed b) the Ministry of Transport or provincial-level People's Committees;

f) Signing agency contracts with traders that fail to meet the conditions on general agents under Article 13 of this Decree or the conditions on agents under Article 14 of this Decree;

g) Signing contracts with general agents or agents that violate Clause 1 or 2. Article 17 of this Decree;

h) Failing to adopt rules on the uniform display of names of petrol and oil exporters and importers at petrol and oil retail shops within their distribution networks under Clause 6. Article 9 of this Decree:

i) Increasing or reducing sale prices in contravention of Article 27 of this Decree or joining cartels with others for price monopoly;

j) Committing other violations of this Decree and other relevant laws.

3. Violations committed by general agents or agents

a) Trading in petrol and oil while failing to meet the conditions specified in Article 13 or 14 of this Decree:

b) Signing contracts to act as general agents or agents in contravention of Clause 1 or 2, Article 17 of this Decree;

c) Trading in petrol and oil in contravention of Clause 4. Article 17 of this Decree:

d) Failing to ensure sufficient volume and quality of petrol and oil sold on the market under law;

e) Speculating or hoarding goods, unreasonably hiking prices, spreading false information, smuggling, committing frauds and other deceitful acts:

f) Transshipping or transferring alongside ships petrol and oil outside areas prescribed by the Ministry of Transport or provincial-level People's Committees;

g) Unlawfully using commercial names, logos, trademarks or trade indications under the Intellectual Property Law and breaching contracts;

h) Being engaged in petrol and oil trading after their certificates of eligibility for petrol and oil trading are revoked:

i)Committing other violations of this Decree and other relevant laws.

4. Violations committed by petrol and oil retail shops

a) Trading in petrol and oil without certificates of eligibility for petrol and oil trading:

b) Failing to meet the conditions specified in Article 15 of this Decree while trading in petrol and oil;

c) Having no signboards or failing to put up proper signboards under Clauses 3 and 9. Article 17 of this Decree:

d) Failing to post up prices or post up prices not according to agency contracts or selling petrol and oil at improper prices under Clause 3, Article

17 of this Decree:

e) Trading in petrol and oil in contravention of Clause 4. Article 17 of this Decree:

f) Failing to ensure sufficient volume and quality of petrol and oil sold on the market under law:

g) Speculating or hoarding goods, unreasonably hiking prices, spreading false information, smuggling, committing frauds and other deceitful acts:

h) Unlawfully using commercial names, logos, trademarks or trade indications under the Intellectual Property Law and breaching contracts:

i) Being engaged in petrol and oil trading after their certificates of eligibility for petrol and oil trading are revoked:

j) Committing other violations of this Decree and other relevant laws.

5. Violations committed by petrol and oil service providers

a) Providing petrol and oil services without fully meeting the conditions specified in Article 18 or 19 of this Decree;

b) Changing petrol and oil quality or committing frauds in terms of petrol and oil volume and quality while providing services:

c) Being engaged in other petrol and oil trading activities in contravention of Clause 2. Article 20 of this Decree:

d) Unlawfully using commercial names, logos, trademarks or trade indications under the Intellectual Property Law and breaching contracts:

e) Committing other violations of this Decree and other relevant laws.

Article 32. Handling of violations

1. Petrol and oil traders that violate this Decree shall, depending on the severity of their violations, be administratively sanctioned or examined for penal liability under current law.

2. Managers and staff of petrol and oil traders: cadres and civil servants on duty that violate this Decree shall, depending on the severity of their violations, be disciplined, administratively handled or examined for penal liability under current law.

Chapter V

IMPLEMENTATION PROVISIONS

Article 33. Effect

1. This Decree takes effect on December 15, 2009.

2. To annul the Government's Decree No. 55/2007/ND-CP of April 6, 2007, on petrol and oil trading; and the Prime Minister's Decision No. 04/2009/QD-TTg of January 9, 2009 on setting aside funds for price valorization.

3. To annul all previous provisions on management of petrol and oil trading which are contrary to this Decree.

Article 34. Transitional provisions

1. Petrol and oil traders obtaining petrol and oil export-import licenses or certificates of eligibility for petrol and oil trading before the effective date of this Decree are not required to carry out procedures to apply for new ones.

2. New investment in petrol and oil trading establishments must conform with the approved planning under this Decree.

3. Operating petrol and oil trading establishments that fail to conform with the approved planning must plan their upgrading and relocation in line with planning.

4. Based on the socio-economic situation and practical petrol and oil trading situation in Area 3 of mountainous and highland regions under law. provincial-level People's Committees shall permit traders being business households and defense petrol and oil distribution stations to act as petrol and oil retail agents with the scope of operation and equipment suitable to petrol and oil trading conditions in those areas; other conditions must comply this Decree and other relevant laws.

5. The Ministry of Industry and Trade shall assume the prime responsibility for, and coordinate with concerned ministries and branches and provincial-level People's Committees in working out roadmaps to implement Clauses 3 and 4 of this Article to ensure stable and sufficient supply of petrol and oil in their localities.

Article 35. Organization of implementation

Ministers, heads of ministerial-level agencies, heads of government-attached agencies and chairpersons of provincial-level People's Committees shall implement this Decree.